Community solar: Bringing solar power to the masses

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  Quantumrun Foresight
• February 2, 2022

Insight summary

Community solar is reshaping the energy landscape by enabling more customers to access solar power, even if they don't have suitable rooftop space or own their homes. This model not only reduces individual energy bills and carbon footprints, but also stimulates local economies by creating jobs in the renewable energy sector and generating revenue for local governments. Furthermore, community solar projects can help governments meet renewable energy targets, foster public-private partnerships, and empower citizens to actively participate in the energy transition.

Community solar context

With more customers able to purchase solar power, utilities are finding that shared solar allows them to extend their solar generating portfolios, while developers capitalize on the potential to diversify their business offerings. Community solar is turning into a growth engine for distributed solar resources by unlocking value in each section of the supply chain. According to a 2015 National Renewable Energy Laboratory report, about 75 percent of US rooftop area is unsuitable for solar PV installations. Community solar, an offsite solar system that can be shared by many consumers, has the potential to grow the solar energy sector beyond its natural limits.

Electric utilities in the US are charting their course to bring solar to their customers. Community solar is a solar-electric system that delivers electricity and/or financial value to (or is owned by) numerous community members, representing a unique chance to bring solar to the public. These programs enable consumers who do not own their houses, do not have good credit, or do not have enough roof space to purchase solar electricity or, in certain circumstances, to invest in solar assets.

Municipal utilities have used state and local government incentives in novel ways to bring shared solar projects to completion. Utilities are adopting these initiatives to get ahead of the game and capture the benefits that dispersed solar resources offer to the grid, anticipating the inevitable expansion of distributed energy resources.

Disruptive impact

Participating in a community solar project can lead to lower energy bills and a reduced carbon footprint. This shift is particularly beneficial for those who may not have the resources or space to install their own solar panels. Companies, meanwhile, can leverage community solar projects to demonstrate their commitment to environmental stewardship, which can enhance their reputation and appeal to eco-conscious consumers.

Community solar projects can also create jobs in the renewable energy sector, which can lead to increased income and improved quality of life for community members. Furthermore, these projects can generate revenue for local governments through taxes and lease payments, which can be reinvested into the community for public services and infrastructure. This economic boost can be particularly beneficial for rural areas, where job opportunities may be limited.

Governments can benefit from community solar in several ways. These projects can help them meet their renewable energy targets and reduce greenhouse gas emissions. Community solar projects can also serve as a model for public-private partnerships, fostering cooperation between different sectors of society. Finally, by supporting community solar, governments can empower their citizens to take an active role in the energy transition, fostering a sense of ownership and responsibility for the environment. 

Implications of community solar

Wider implications of community solar may include:

• Eliminating the need for a rooftop system to be financed or purchased upfront.
• Saving consumers money by protecting them against escalating energy bills.
• Assisting in the establishment of partnerships with community leaders and local non-profits.
• Collaborating with utility-scale clean energy, battery storage, and electric cars to minimize carbon pollution from the electric grid.
• Assisting in avoiding, and eventually retiring, older power plants that emit dangerous chemicals and pollute the air. (This factor is important since a disproportionate number of low-income and minority individuals often reside within 30 miles of coal-fired power plants.)
• Building community resiliency since a clean-energy network can support microgrids that can disconnect from the main grid during blackouts, thereby keeping the lights on and helping safeguard people from power outages.

Questions to consider

• When do you think solar power will see widespread adoption in the US?
• How do you feel about changes in agricultural zoning, e.g., using farmland for community solar projects which may cause unintended environmental consequences, such as deforestation or habitat loss?